ADM Reports First Quarter Adjusted Earnings of $0.42 per Share

05/02/2016

Net earnings of $230 million, or $0.39 per share Challenging market conditions continued into the quarter Continued to actively manage portfolio Market dynamics could present opportunities in second half of the year

The company reported adjusted earnings per share1 of $0.42,
down from $0.78 in the same period last year. Included in these results
was a $0.08 per share loss related to updated portfolio valuations in an
investment joint venture. Adjusted segment operating profit1
was $573 million, down 36 percent from $892 million in the year-ago
period. Net earnings for the quarter were $230 million, or $0.39 per
share, and segment operating profit1 was $573 million.

“Challenging market conditions continued in the first quarter,
particularly affecting Ag Services,” said ADM Chairman and CEO Juan
Luciano. “Low U.S. export volumes and weak margins continued, and in the
quarter, poor results from the global trade desk impacted results for Ag
Services. Results for Corn improved compared to the first quarter one
year ago, led by a strong performance in sweeteners and starches. For
Oilseeds, global protein demand remained solid. However, first quarter
results were impacted by weak global crush margins. WFSI results were in
line with expectations.

“During the quarter, we continued to advance our strategic plan. We
acquired a controlling stake in Harvest Innovations, enhancing ADM’s
plant protein, gluten-free ingredient portfolio. We announced the
purchase of a corn wet mill in Morocco that will further expand our
global sweeteners footprint. We opened our new, state-of-the-art flavor
creation, application and customer innovation center in Cranbury, New
Jersey. And, as part of our ongoing portfolio management efforts, we
reached an agreement to sell our Brazilian sugarcane ethanol operations.
In addition, we achieved almost $50 million of run-rate savings in the
quarter and remain on track to meet our $275 million target by the end
of the calendar year. We repurchased about $300 million of shares in the
quarter as we continue to execute on our balanced capital allocation
framework.

“The first half of the year continues to present a challenging
environment. However, we are cautiously optimistic that reduced South
American soybean and corn production could bring improved soybean crush
margins and merchandising opportunities in the second half of the year.”

First Quarter 2016 Highlights1

Adjusted EPS of $0.42 excludes a $0.02 per share charge related to
LIFO and $0.01 per share in impairments. Included in adjusted EPS is a
$0.08 per share loss related to updated portfolio investment
valuations in CIP, an investment joint venture.

Agricultural Services decreased $118 million compared to a strong
quarter last year amid lower North American export volumes and
margins, fewer global merchandising and transportation opportunities,
as well as unfavorable Global Trade Desk merchandising positions.

The company returned $0.5 billion to shareholders through dividends
and share repurchases.

1 Non-GAAP financial measures; see pages 4 and 9 for
explanations and reconciliations, including after-tax amounts.

Ag Services Earnings Decline on Reduced Merchandising Opportunities

Agricultural Services operating profit was $76 million, down $118
million from the year-ago quarter.

Merchandising and handling earnings declined $83 million to $24 million,
primarily due to a challenging merchandising environment that continued
due to weak U.S. export competitiveness, lower North American volumes
and margins, and a quarterly loss for the global trade desk compared to
positive results last year. Losses from the global trade desk were
caused in part by unfavorable merchandising positions.

Transportation results declined $28 million to $4 million, due to low
U.S. exports and high water conditions that resulted in lower barge
volumes and higher operating costs.

Milling and other had a solid quarter, but results were down $7 million
to $48 million due to lower grain and feed margins.

Sweeteners and starches results improved $56 million to $141 million as
the business continued to perform well, with an improved cost
environment driven by strong capacity utilization.

Bioproducts results were down from $42 million to a loss of $12 million,
due primarily to the continued challenging conditions in the global
lysine market. In addition, ethanol margins continue to be impacted by
high industry production levels that caused inventories to build
throughout the quarter.

Oilseeds Earnings Lower vs. Exceptionally Strong Year-Ago Quarter

Oilseeds operating profit of $261 million decreased $231 million from
the strong year-ago results.

Crushing and origination operating profit of $120 million declined $214
million from last year’s high levels. Global soybean crush and
origination results were down significantly due to lower global margins
resulting from increased Argentine soy meal exports and significantly
reduced U.S. meal exports. In addition, lower softseed crush volumes and
weaker Brazilian commercialization, which slowed throughout the quarter,
negatively impacted results.

Refining, packaging, biodiesel and other generated a profit of $79
million for the quarter, down $11 million from year-ago results, with
stronger results from North America and Europe offset by weaker results
in South America. With the sale of the Cocoa business in October 2015,
results decreased $24 million compared to last year.

Oilseeds results in Asia for the quarter declined $6 million from the
year-ago period, due primarily to Wilmar’s lower fourth quarter earnings.

WFSI Earns $70 million, Up vs. Last Year

WFSI operating profit was $70 million in the first quarter. Results
included operational start-up costs for the Tianjin Fibersol facility in
China and the Campo Grande specialty protein complex in Brazil.
Excluding these start-up costs, results improved by about $5 million
from prior year results with solid performance from WILD Flavors and
higher results from specialty proteins. With more than 900 revenue
synergy projects identified, WFSI remains on track to achieve its 2016
targets.

Other Items of Note

As additional information to help clarify underlying business
performance, the tables on page 9 include both adjusted EPS as well as
adjusted EPS excluding significant timing effects.

Included in Corporate results was a $50 million loss related to updated
portfolio investment valuations in Compagnie Industrielle et Financiere
des Produits Amylaces SA (CIP). ADM holds a 43.7 percent equity interest
in CIP, an investment joint venture held since the late 1980s.

Conference Call Information

ADM will host a webcast on May 3, 2016, at 8 a.m. Central Time to
discuss financial results and provide a company update. A financial
summary slide presentation will be available to download approximately
60 minutes prior to the call. To listen to the webcast or to download
the slide presentation, go to www.adm.com/webcast.
A replay of the webcast will also be available for an extended period of
time at www.adm.com/webcast.

Forward-Looking Statements

Some of the above statements constitute forward-looking statements.
ADM’s filings with the SEC provide detailed information on such
statements and risks, and should be consulted along with this release.
To the extent permitted under applicable law, ADM assumes no obligation
to update any forward-looking statements.

About ADM

For more than a century, the people of Archer Daniels Midland Company
(NYSE: ADM) have transformed crops into products that serve the vital
needs of a growing world. Today, we’re one of the world’s largest
agricultural processors and food ingredient providers, with more than
32,300 employees serving customers in more than 160 countries. With a
global value chain that includes 428 crop procurement locations, 280
ingredient manufacturing facilities, 39 innovation centers and the
world’s premier crop transportation network, we connect the harvest to
the home, making products for food, animal feed, industrial and energy
uses. Learn more at www.adm.com.

Financial Tables Follow

Segment Operating Profit and Corporate Results

A non-GAAP financial measure

(unaudited)

Quarter endedMarch 31

(In millions)

2016

2015

Change

Agricultural Services Operating Profit

Merchandising and handling (excluding specified item)

$

24

$

107

$

(83

)

Milling and other

48

55

(7

)

Transportation

4

32

(28

)

Restructuring charges*

(1

)

—

(1

)

Total Agricultural Services

$

75

$

194

$

(119

)

Corn Processing Operating Profit

Sweeteners and starches (excluding specified item)

$

141

$

85

$

56

Bioproducts (excluding specified item)

(12

)

42

(54

)

Corn hedge timing effects*

2

(14

)

16

Total Corn Processing

$

131

$

113

$

18

Oilseeds Processing Operating Profit

Crushing and origination (excluding specified item)

$

120

$

334

$

(214

)

Refining, packaging, biodiesel, and other (excluding specified items)

79

90

(11

)

Asia

62

68

(6

)

Restructuring charges*

(1

)

—

(1

)

Biodiesel credits*

—

(9

)

9

Cocoa hedge timing effects*

—

(14

)

14

Total Oilseeds Processing

$

260

$

469

$

(209

)

Wild Flavors & Specialty Ingredients Operating Profit

Wild Flavors and Specialty Ingredients

$

70

$

68

$

2

Total Wild Flavors and Specialty Ingredients

$

70

$

68

$

2

Other Operating Profit

Financial

$

37

$

11

$

26

Total Other

$

37

$

11

$

26

Segment Operating Profit

$

573

$

855

$

(282

)

*Memo: Adjusted Segment Operating Profit

$

573

$

892

$

(319

)

Corporate Results

LIFO credit (charge)

$

(14

)

$

2

$

(16

)

Interest expense - net

(68

)

(78

)

10

Unallocated corporate costs

(116

)

(103

)

(13

)

Minority interest and other charges

(69

)

14

(83

)

Total Corporate

$

(267

)

$

(165

)

$

(102

)

Earnings Before Income Taxes

$

306

$

690

$

(384

)

Segment operating profit is ADM’s consolidated income from operations
before income tax excluding corporate items. Adjusted segment operating
profit is segment operating profit adjusted, where applicable, for
specified items and timing effects (see items denoted*). Timing effects
relate to hedge ineffectiveness and mark-to-market hedge timing effects.
Management believes that segment operating profit and adjusted segment
operating profit are useful measures of ADM’s performance because they
provide investors information about ADM’s business unit performance
excluding corporate overhead costs as well as specified items and timing
effects. Segment operating profit and adjusted segment operating profit
are non-GAAP financial measures and are not intended to replace earnings
before income tax, the most directly comparable GAAP financial measure.
Segment operating profit and adjusted segment operating profit are not
measures of consolidated operating results under U.S. GAAP and should
not be considered alternatives to income before income taxes or any
other measure of consolidated operating results under U.S. GAAP.

Current assets (excluding cash and cash equivalents, short-term
marketable securities, and current assets held for sale) less
current liabilities (excluding short-term debt, current maturities
of long-term debt, and current liabilities held for sale).

(b)

Net debt is calculated as short-term debt plus long-term debt,
including current maturities less cash and cash equivalents and
short-term marketable securities.

Summary of Cash Flows

(unaudited)

Three months endedMarch 31

2016

2015

(in millions)

Operating Activities

Net earnings

$

230

$

493

Depreciation and amortization

231

216

Asset impairment charges

11

—

Gain on sale of assets and acquisition

(3

)

(3

)

Other - net

88

(129

)

Changes in operating assets and liabilities

(534

)

(532

)

Total Operating Activities

23

45

Investing Activities

Purchases of property, plant and equipment

(180

)

(244

)

Net assets of businesses acquired

(84

)

—

Proceeds from sale of business/assets

11

6

Marketable securities - net

(50

)

100

Other investing activities

(145

)

(123

)

Total Investing Activities

(448

)

(261

)

Financing Activities

Long-term debt borrowings

—

8

Long-term debt payments

(4

)

(7

)

Net borrowings (payments) under lines of credit

697

742

Purchases of treasury stock

(296

)

(566

)

Cash dividends

(177

)

(177

)

Other

1

7

Total Financing Activities

221

7

Increase (decrease) in cash and cash equivalents

(204

)

(209

)

Cash and cash equivalents - beginning of period

910

1,099

Cash and cash equivalents - end of period

$

706

$

890

Segment Operating Analysis

(unaudited)

Quarter endedMarch 31

2016

2015

(in ‘000s metric tons)

Processed volumes

Oilseeds

8,281

8,849

Corn

5,742

5,302

Total processed volumes

14,023

14,151

Quarter endedMarch 31

2016

2015

(in millions)

Revenues

Agricultural Services

$

6,480

$

8,045

Corn Processing

2,207

2,466

Oilseeds Processing

4,997

6,293

Wild Flavors and Specialty Ingredients

592

606

Other

108

96

Total revenues

$

14,384

$

17,506

Adjusted Earnings Per Share

A non-GAAP financial measure

(unaudited)

Quarter endedMarch 31

2016

2015

Reported EPS (fully diluted)

$

0.39

$

0.77

Adjustments:

LIFO (credit) charge (a)

0.02

—

Asset impairment and restructuring charges (b)

0.01

—

U.S. biodiesel credits (c)

—

0.01

Sub-total adjustments

0.03

0.01

Adjusted earnings per share (non-GAAP)

$

0.42

$

0.78

Memo: Timing effects (gain) loss

Corn (c)

—

0.01

Cocoa (d)

—

0.02

Sub-total timing effects

—

0.03

Adjusted EPS excluding timing effects (non-GAAP)

$

0.42

$

0.81

(a)

The company’s pretax changes in its LIFO reserves during the period,
tax effected using the Company’s U.S. effective income tax rate.

Adjusted EPS and adjusted EPS excluding timing effects reflect ADM’s
fully diluted EPS after removal of the effect on Reported EPS of certain
specified items and timing effects as more fully described above.
Management believes that these are useful measures of ADM’s performance
because they provide investors additional information about ADM’s
operations allowing better evaluation of ongoing business performance.
These non-GAAP financial measures are not intended to replace or be an
alternative to Reported EPS, the most directly comparable GAAP financial
measure, or any other measures of operating results under GAAP. Earnings
amounts described above have been divided by the company’s diluted
shares outstanding for each respective quarter in order to arrive at an
adjusted EPS amount for each specified item and timing effect.